The Nigeria Customs Service (NCS) has recorded a N3.206 trillion revenue collection in 2023, representing an increase of 21.4 percent from N2.64 trillion recorded in 2022.
The Comptroller-General of Customs, Mr. Adewale Adeniyi, announced the figure during a press conference held in Abuja yesterday.
He announced that the NCS had achieved a significant milestone in the fiscal year 2023 by recording a total revenue collection of N3.206 trillion, which marked a noteworthy 21.4% increase from the previous year’s total revenue of N2.641 trillion.
“The growth demonstrated by the NCS is consistent with its upward trajectory, as evidenced by a 17.88% increase in revenue in 2022. This consecutive expansion in revenue highlights the Service’s sustained efforts in optimizing revenue collection for the Federal Government, and exemplifies our ability to adapt to dynamic economic conditions.”
“This achievement is truly remarkable, especially considering the difficulties faced within the operational environment.”
The NCS recorded a revenue shortfall of N478 billion due to operational challenges.
The volume of revenue collection was impacted by lower transaction volumes, compliance issues, inadequate infrastructure, capacity gaps delays in policy implementation and socio-political factors.
The introduction of higher denominations of the new Naira bills led to a prolonged cash crunch, which temporarily impacted purchasing power and overall economic activities. This was compounded by the anxiety associated with a major election year.
“The transfer of power to the administration led by President Tinubu resulted in new policy changes, such as the elimination of fuel subsidies, the adoption of a floating exchange rate, and the closing of Nigeria’s northern borders with Niger Republic, thereby adding another layer of complexity.”
Due to various challenges, the revenue for the first half of the year fell short of the projected target by NN532 billion.
“However, following my appointment as the Comptroller-General in July, a positive transformation occurred in the later part of the year.
During 2023, the management team was reconstituted based on merit, resulting in a significant shift that enabled the company to exceed its monthly revenue targets by 6.71% for the first time. The monthly revenue collection for the latter half of the year averaged N332.9 billion, which was a substantial increase from the initial N201.7 billion recorded in the first half of the year.
The revenue shortfall decreased by 10% to N478 billion by year-end 2023 due to an improved revenue collection in the latter half of the year.
This calculation is based on the government’s projected revenue collection of N3.684 trillion by the NCS, compared to the actual collection of N3.206 trillion.
The head of Customs stated that the Service will implement various strategic initiatives to improve performance.
These initiatives include implementing the Advanced Ruling system, aligning NCS operations with global best practices, and meeting the recommendations of the World Trade Organization’s Trade Facilitation Agreement (WTO TFA).
Furthermore, the inauguration of a Steering Committee on the Implementation of Authorized Economic Operators (AEO) for Compliant Traders highlights our readiness to move from Fastrack 2.0 to the AEO concept.
Foreign Exchange rate
The Customs Service noted the impact of currency exchange variations on trade dynamics and revenue collection and pledged to address the fluctuation in exchange rates.
“NCS is taking a proactive approach to address the challenge of potential adverse effects. One of the strategies we employ is to regularly update the exchange rate in line with the current market conditions. This approach ensures optimal revenue performance even in the face of fluctuating currency values, and helps us remain adaptable to changes in our operational environment.”
50 % mgt staff about to exit.
He announced that around 50% of the management team would soon depart, and therefore, he planned to embark on an intensive capacity-building program within the organization.
Adeniyi revealed that some sections of the Nigeria-Benin border have been reopened and that discussions are ongoing between the authorities of both countries regarding the reopening of other sections.
He emphasized that his government has a zero-tolerance policy towards smuggling. Moving forward, the NCS will closely monitor the outcomes of seized goods transferred to other government agencies to ensure conclusive outcomes in the public interest.
